The British pound has pierced the 1.3150 level during the trading session on Thursday but has stalled a bit above there as we await the jobs numbers out of America on Friday. Ultimately, I do think this pair does break out but the question here is not so much as to whether or not it can, but whether or not it will right now. Pullbacks should continue to offer value, as we have firmly established the 1.30 level as being very supportive. Ultimately, I think that we will see an attempt to break out and go towards the 1.35 handle. However, a little bit of consolidation might be in order.
GBP/USD Video 07.08.20
Consolidating a bit may help bring more buyers into the market, and as long as we stay above the 1.30 level it will continue to instill confidence for the buyers. Obviously, this is not a market that you want to be shorting, even if we do break down below the 1.30 level. At that point I think we would simply look for another buying opportunity closer to the 1.2750 level. That begins a 100 PIP range of support that I think will be very interesting for traders. A break down below the 1.2650 level could change a lot of things but right now that does not look to be very likely. With the Federal Reserve out there throwing money into the system, it is hard to imagine that the US dollar suddenly strengthens without some type of major shift and overall psychology.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Gold Markets Continue to Defy Gravity
- Crude Oil Price Forecast – Crude Oil Markets Continue to Grind
- E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Supported by Jump in Facebook Shares
- S&P 500 Price Forecast – Stock Markets Ready for Jobs Number
- Oil Failed To Develop More Upside Momentum Above $42.50
- Apple Could Top Out After Stock Split